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Home Business

Ukraine: the presumptive grain export quoting by Ukraine

The FINANCIAL by The FINANCIAL
August 23, 2010
in Business
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The FINANCIAL — The main reason of grain export quoting, which the Government of Ukraine plans to sign, is satisfying the food safety of the country, announced the Minister of Agrarian Policy of Ukraine Nikolai Prysiaghniuk on August 17.

 

The Minister noted that export quotas introduction is allowed by the norms of the World Trade Organization (WTO) and the European Union within the frames of such situation.

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"According to him, due to the unfavorable weather conditions, new crop volumes face essential decrease compared to the preliminary forecasts. The next year will be also difficult, added N.Prysiaghniuk," Agri Market informs.

 

The Minister stated that the proposed export quota (2.5 mln tonnes for the period from September 1, 2010 to January 1, 2011) will be higher than the volumes according to the balance of grain production and consumption in Ukraine.

 

According to him, barley export volumes should total 2.42 mln tonnes, and from July 1 to August 16 Ukraine exported 1.2 mln tonnes; wheat – 6 mln tonnes and 1.1 mln tonnes, respectively. Besides about 0.9 mln tonnes are in the ports and the Government allowed to export them out of thestated quota.

 

N.Prysiaghniuk added that according to rye export balance which totals 19 thsd tonnes, form the beginning of Marketing Year (July 1) Ukraine exported 21 thsd tonnes.

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So the export volumes total 6.2 mln tonnes, and we are outside the frameworks of the balance, the Minister added.

 

Viktor Slauta, the Vice Prime-Minister of Ukraine on agricultural issues, noted that the export quota volumes, which the Government offers, will allow to refresh the market, which is waiting for the Government decision stopped in tracks.

 

According to N.Prysiaghniuk quotas introduction will not impact on the price situation on the market. We will try to hold the prices on the same level stated he. The Minister reminded that the Government settled the purchasing market prices, at which the Agrarian Fund will purchase grain at the agrarians.

 

According to the previous announcement, the Government decrease the new crop forecast from 45-47 to 40-42 mln tonnes, compared to 46 mln tonnes in 2009. Meanwhile early grains harvesting campaign is almost over: the harvested volumes totaled 31 mln tonnes and now the total crop volume depends on maize.

 

To date US Department of Agriculture decreased grain forecast by 6.2 mln tonnes in Ukraine for 2010, to the level of 38.75 mln tonnes; export forecast – by 4.2 mln tonnes, to the level of 15 mln tonnes.

 

 

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